The National Housing Federation has said Newham's plans to relocate tenants out of London "is a desperate move which demonstrates the scale of the housing crisis".
It urged the Government and the London Mayor to take urgent action.
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It is the fourth time in five years that the London borough has topped the rankings, according to data from the ONS.
Catherine Burke's body was discovered at a house in a quiet street in Muswell Hill last Thursday evening.
Residents said living next to the 40 foot high stinking mound was a 'living nightmare'.